SMME Contractors solution

Background MMF originated in 2002 when the SMME markets were virtually brand new and nobody wanted to participate in this market to assist the contractors with Finance, Materials or Plant and Equipment. MMF was one of the first Independent Companies to assist SMME markets with the above services. Since 2002 MMF has evolved into a total solution for these hurdles in the SMME Markets.

Problems and Requirements SMME Problems: NCR / FICA – Restricted credit limits for SMME’s Access to credit – including Banks SMME Funding Requirements: Performance Guarantees to Government for new contracts awarded Materials required for the contracts Hire of plant and machinery Mentorship and skills

Total solution offered by MMF MMF’s proven systems solution becomes the Compliancy System/Control ensuring delivery of the SMME projects. MMF have tailor-made Performance Guarantee Policies and Contractors All-Risk Policies offered through Eaglewatch Financial Services (FSP 42423) and Standard Bank – ensuring the lowest premiums specifically for the SMME markets – backed by the MMF system. MMF finances materials for the SMME’s by supplying materials per the Materials Bill or Bill of Quantity on a MMF Buying Card. Included are optional travel, payment and payroll cards. MMF can also guarantee payments to other Creditors/Suppliers other than materials such as Plant hire Companies etc..

Finance amounts considered AMOUNTS CONSIDERED Smallest amount R Largest amount R CONDITIONS Must be an awarded contract from any Government Department. SMME must be registered with the CIDB or NHBRC. Have some references of previous work experience. Have a profitable contract.

How can I apply? Call the office at 012 – or your details to: MMF trained staff will gladly assist you with your application.

HIGHLIGHTS Application process Complete the Application form and fax it back to the office with a copy of your ID, Proof of Residence and Tax Clearance Certificate Your references will be checked and if Approved you will have to fax or the following: Letter of Appointment Bill of Quantities Quotations for materials required for your contract We will check your rates and prices to ensure you are making a Profit Once we have established that you have the Affordability / Profit on your Contract - you will have to sign a Material Supply /JV, and a Cession. We will assist you to open a Standard Bank or Nedbank bank account in your name and you will be issued a Card that can only be used to purchase materials for this specific project from our Approved suppliers. You will also be required to pay a Performance / Credit Policy.

How does MMF work? MMF uses preferred suppliers – that act as our Outlets. The Bill of Materials is loaded on the MMF File Server. The contractor is issued with a MMF debit card that can only be used to buy the materials that is listed on the Bill of Quantity. MMF settles the Outlet for Cash and gets a discount that provides the income for MMF to pay expenses. IT DOES NOT COST THE CONTRACTOR ANY MONEY! The Bill of Quantities get updated with each purchase and thus ensuring no over spending. The Contractor pays MMF a 2,5% (contract value) management fee for the use of the system over the term of the contract. Amounts purchased are blocked on the Bank account. Once payment is received from Government in the Bank account the Contractor authorize the payment to MMF. The profit remains in the bank account or can be transferred to the Contractors nominated bank account.

Example of site

HOW DOES MMF WORK AT AN OUTLET STORE - APPLICATION The store completes the Application with the contractor and fax it to or to MMF will scan the application/contractor and report back to the Contractor and store. Positive results would require the contractor to forward his Letter of Acceptance, Bill of Quantity and Quotations for his Bill to MMF. MMF will determine if the Contractor would be making profit from his Contract – and the results will be communicated with the Contractor and Store.

HOW DOES MMF WORK AT AN OUTLET STORE - APPLICATION Once the Contractor is APPROVED his Bill of Quantities is loaded on the MMF System. MMF then issue a Card that is sent to the Outlet Store or Client. The Contractor can then buy the material from the store using the MMF Point of Sale Device (supplied to all stores by MMF). The Contractor can ONLY purchase the materials that is loaded on his Bill. Signed Delivery Notes are faxed or forwarded via to MMF by the Store -as Proof of Receipt by the Contractor. The Store will conduct regular Site-Visits to monitor progress of the Contract and to prepare for the Next Order/Purchase Stock level.

HOW DOES MMF WORK AT AN OUTLET STORE - OPERATIONAL

MMF – EXAMPLE OF CONTRACTOR FILE BILL OF QUANTITIES

IN CONCLUSION We wish to thank everybody for the opportunity to present our Company and we look forward to conduct business with you. God Bless.